Lecture 8/ Chapter 7 Flashcards
1
Q
Producer Surplus
A
The amount a seller is paid for a good minus the seller’s cost of providing it
2
Q
Efficiency
A
The property of a resource allocation of maximizing the total surplus received by all members of society
3
Q
Willingness To Pay
A
The maximum amount that a buyer will pay for a good
4
Q
Consumer Surplus
A
The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
